12° Nicosia,
20 June, 2024

Olive oil prices soar due to shortage and weather woes

Consumers brace for steep increases, urging producers to keep costs in check


The price of olive oil is expected to rise dramatically, possibly exceeding 10 euros per liter and reaching 15 euros in Europe, according to agricultural organizations. This increase is attributed to adverse weather conditions in major olive oil-producing countries like Spain and Italy, which have reduced global olive oil production by 50%. Prices of extra virgin olive oil have already risen by at least 100% compared to last year. Consumers are urged to monitor these price increases, and the Ministry of Agriculture is being called upon to intensify controls to prevent price gouging.

In Cyprus, olive oil production has been affected, with a 50% reduction expected due to high temperatures and climate changes. While producers may face higher costs due to these challenges, the dramatic price increases are causing concern. Olive oil is considered a staple, and the sharp price hikes are seen as detrimental to consumers. European olive oil prices are expected to soar, affecting Cyprus as well. Traders are requesting olive oil at prices between 8 to 9 euros per liter, doubling what it was last year.

The European olive oil market is facing supply constraints, as Spain, which typically produces 1.3 million tons of olive oil, is expected to produce only 600,000 tons this year due to droughts and other natural disasters. As a result, prices are expected to rise further. Despite the good olive oil production in Cyprus, it is likely to be influenced by the wider European market, where prices may double or even triple. Olive oil is essential to the Mediterranean diet, and consumers are encouraged to monitor prices to ensure they are not unfairly inflated.

Agricultural organizations stress that while some price increase is justified due to rising production costs, excessively high prices could discourage consumers and push them towards alternative oils. They call on producers to maintain reasonable prices and respect their consumers, who are essential allies in sustaining the olive oil industry.

[Information sourced from CNA]

Cyprus  |  inflation  |  consumer  |  food

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